Malaysia: Ekovest to issue RM3.64b Sukuk for expressway

KUALA LUMPUR: Ekovest Bhd is set to issue the largest ringgit-denominated Sukuk wakalah of RM3.64bil to fund its Setiawangsa-Pantai Expressway (SPE) project.

The toll road project,formerly known as the DUKE phase 3, will cost RM3.9bil with a 53 year concession period with the government.

"The issuance of Sukuk wakalah for the SPE will be among the largest issuance for a new highway construction project as well as among the highest rates AA-sukuk so far in 2016.

"The project will also be the first public private partnership project to use the government's reimbursement interest assistance (RIA) as part of the financing structure," said Minister of Finance II, Datuk Johari Abdul Ghani at the signing ceremony of the Sukuk wakalah for the SPE project.

Part of the funding of the SPE project would come from a RM560mil interest free government RIA and RM850mil equity by Ekovest. 

"Securing the financing for the SPE was the last piece of the puzzle for project. This would be the largest project that Ekovest group will undertake to date," said Ekovest managing director Datuk Seri KC Lim on Tuesday.

AmInvestment Bank Bhd is the principal advisor and lead arranger for the sukuk. The joint lead managers and joint bookrunners are AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd.

(The Star Online / 16 August 2016)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Maldives spearheads growth of Islamic finance in South Asia

Many identify the Maldives as an idyllic tropical island holiday destination, but little is known about the fact that the country is making plenty of waves in developing its Islamic finance industry towards an investment hub for South Asia and centre for the halal industry in the region. 

As an Islamic country – the 1997 Constitution of the Maldives designates Islam as the official state religion – the Maldives was quick in building up an Islamic finance industry at a fast pace with the long-term objective to become an offshore finance centre for Shariah-compliant investments, mainly in order to diversify its industry away from dominating tourism. To that end, President Yameen Abdul Gayyoom’s government has developed a roadmap to expand Islamic financial services throughout the archipelago and base it on official regulations by the Maldives Monetary Authority. 

According to Aishath Muneeza, Deputy Minister in the Maldives Ministry of Finance and Treasury and chairwoman of the Shariah Advisory Committee of the Capital Market Development Authority Maldives, the share of Shariah-compliant financial assets were already at around 5% of total assets by the end of last year, and increasing.

“The growth of Islamic finance is happening at a very fast pace,” she said, adding that “I hope that we will be able to create an Islamic finance centre and act as the leader for Islamic finance and the halal industry in the South Asia region.”

The advent of Islamic finance in the Maldives dates back to 2003 when the country saw the establishment of its first Islamic finance institution, Amana Takaful Maldives, a fully-fledged Islamic insurance company. But due to little knowledge among the population about the characteristics of Islamic finance at that point of time, it took until 2011 for the first Islamic bank to open, Maldives Islamic Bank, with registered capital of $12mn and the assistance of Saudi-based Islamic Corp for the Development of the Private Sector, or ICD, a unit of the Islamic Development Bank.

But from then onwards, the growth of Islamic finance in the country happened at an impressive speed as awareness among the population about Shariah-compliant banking and investment grew and banks and other financial institutions widened their product offerings and services for both retail and corporate customers.

In 2012, the first Islamic window of a non-banking financial institution, HDFC Amna, a unit of the Maldivian housing finance Corp HDFC, was introduced to offer musharakah-based home financing instruments. 

Other financial institutions followed, namely Alia Investment, a private firm offering financing based on ijarah contracts. Later on, an Islamic finance-based Haj pilgrim fund, Maldives Haj Corp, was launched, and the largest bank and the largest insurer of the country, Bank of Maldives and Allied Insurance Maldives, respectively, opened Islamic finance windows.

To cope with demand for Islamic finance experts, the government asked the International Centre for Education in Islamic Finance, or INCEIF, to start offering Islamic finance courses in the Maldives to expand skills of conventional banking staff, and later on launched the Maldives Centre for Islamic Finance, designed to strengthen the Maldives’ footprint as a hub for Islamic finance and the halal industry in South Asia. Furthermore, halal certification was introduced in 2014 and a halal logo for aquaculture and fishery products created.

Last year, the Ministry of Economic Development started offering Islamic microfinancing through the Bank of Maldives, and earlier in 2016, the government launched Hazana Maldives, a special-purpose vehicle for the further development of Islamic finance. It also created a Shariah advisory board and laid the regulatory framework for sukuk investment, an important move in the economic diversification drive of the tourism-dependent island nation as Islamic bonds normally entice larger funds.

In a first focus, the Maldivian government plans to tap Islamic finance from India via debt sales and deposits. India has a huge Muslim population of 166mn, but so far no Islamic finance industry because of opposition from Hindu lawmakers. Incentives for Indian Muslims to use Islamic finance vehicles in the Maldives instead of Pakistan, Bangladesh or Sri Lanka are that the industry – although having a solid regulation framework – is not as much regulated as those of its bigger rivals in the region and thus is more likely to attract bigger players in the industry.


(Gulf Times / 16 August 2016)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Pak-Qatar Family Takaful opens new branch

Karachi—Pak-Qatar Family Takaful Limited (PQFTL) has inaugurated a new branch in Gulshan-e-Iqbal area of Karachi. This new branch will create great convenience and provide a wide range of Takaful services to a vast number of consumers, living in Gulshan-e-Iqbal and surrounding areas. The inauguration ceremony was graced by senior management officials and prominent professionals.

The Zonal Head of TDT (Individual) Haq Nawaz said that the opening of this new branch is a significant milestone in the progressive journey of the company, as it reflects the company’s customer-centric approach, by enhancing the outreach and ‘accessibility’ for our valuable customers. The opportunity to continue the company’s high quality customer service is very exciting for me, as we continue to expand to new locations all over the country.

Kamran Saleem CFO of PQFTL, while congratulating the team for this successful endeavour said, “With these new branches, we’re not simply expanding our business, but making a commitment towards promoting Takaful among the masses. Our primary aim is to transform the financial industry in Pakistan by offering our highly competitive products and services, while realigning it with Islamic principles.”

The Country-Head of Sales and Deputy Chief Executive Officer of PQFTL Menhas expressed his delight about this wonderful team-effort and said that the key to successfully serving a community and higher cultural values, along with the company’s brand, is to find and nurture the most talented, like-minded Takaful professionals in the region. 

The team has shown remarkable diligence for maintaining the company’s stature as a pioneer and a leading innovator of Takaful in Pakistan. Nasir Ali Syed CEO, Waqas Ahmad Chief Operating Officer, Saqib Zeeshan Head of TDT Corporate and several other senior executives were also present during the grand inaugural ceremony.

(Pakistan Observer / 12 August 2016)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com